What is a credit transfer?

Table of Contents
1. What are the main steps in making a credit transfer?
2. Advantages and risks of using credit transfers

A credit transfer is a cashless payment order through which a specific amount is transferred from the sender’s account to the recipient’s account, based on instructions and details submitted to the bank. This is a preferred method for regular financial transactions, one-time payments, and international money transfers. 

What are the main steps in making a credit transfer?

Every bank transaction follows a specific set of rules. Attention to detail is key to ensuring the operation is processed correctly. Here are the main steps in carrying out an electronic fund transfer:

• Filling out a form with accurate recipient information – name, IBAN, and bank details. Even a minor error can render the transaction invalid or direct the funds to the wrong recipient.
• Indicating the exact amount and currency – the amount must match the invoice or contract to avoid misunderstandings.
• Clearly stating the reason for the transfer – such as an invoice, service, or contract. This information helps both the bank and the recipient in accounting for the transaction.
• Choosing the type of credit transfer – intra-bank, interbank, or international. Each option has different processing times and fees, which should be considered in advance.
• Attaching supporting documents if needed – this provides legal clarity and proof in case of disputes.
• Confirming with an electronic signature or code – without this step, the payment order will be considered invalid.
• Keeping a receipt or statement – this serves as proof in case of disputes. It is recommended to archive such documents for at least 5 years according to accounting and banking regulations.

Each of these steps ensures traceability, security, and accuracy, making credit transfers a preferred method for businesses and individuals who require reliability in banking operations.

Advantages and risks of using credit transfers

The strength of a credit transfer lies in control – you decide when, how, and to whom the funds are sent, without intermediaries or the need to carry cash. It is fast, accessible, and compatible with various types of banking and international transactions.

The main risk lies in incorrect data entry – a single wrong digit can send the funds to the wrong recipient. That’s why it’s crucial to follow all instructions carefully and double-check every step.